London, 13th April 2012 -
In the first quarter of 2012, hotel investment volumes in Europe,
Middle East and Africa (EMEA) totalled €1.5 billion, a 39 % decline
compared to Q1 2011. However, volumes in Q1 2011 were distorted by
approximately €1billion from three significant transactions (Marriott
Champs Elysées, Ritz Carlton Moscow and a large Accor European
portfolio), so stripping these out, volumes increased by 7% compared to
the same period last year. Single asset deals accounted for 74% of
transactions.

Investment activity remains strong in Paris and London with a combined
investment total of €645 million in 14 deals and with continued
trading, growth investor demand is expected to continue to be high.
Christoph Härle, CEO Continental Europe Jones Lang LaSalle Hotels
said: "Investment sentiment remains robust for quality assets in key
cities, however, this sentiment could soften over the next months if
growth in hotel performance continues to slow across some of the key
European hotel markets". At year-to-date February 2012 hoteliers posted
a fall in revenue per available room (RevPAR) in some cities, such as
Munich (-7.7 %), Düsseldorf (-11.5 %), Amsterdam (-9.7 %), Zurich
(-10 %) or Copenhagen (-2.6 %).

The UK remained the most liquid market in EMEA during Q1 2012 with
total hotel transaction volumes reaching €784 million, 52% of total
EMEA transaction volumes. Activity was primarily concentrated on London
with 11 hotel sales completing including the sale of the 4-star 129
room hotel Kingsley Thistle for about €51 million to a private client
of Citi Bank.

Jon Hubbard, CEO Northern Europe Jones Lang LaSalle Hotels said:
"London was once again one of the most active hotel investment markets
in Europe and we anticipate further strong interest across the market,
including for trophy assets. The pricing gap between regional UK and
London hotels is widening and, while trading in many of the regions
remains weak, we do not anticipate a significant uptick in
transactional activity in those markets in the short to medium term,
except where driven by distress"

In France, hotel transaction volume totalled €252 million in Q1 2012,
17 % of total EMEA transaction volumes. Activity was driven by three
major hotel sales in Paris including the 4-star 617 room Pullman Paris
Rive Gauche which was sold by Accor to French property company Bouygues
Immobilier for €77 million.

In Germany, total hotel transaction volume amounted to about €70
million, 5 % of total EMEA transaction volumes. Significant
transactions included the sale of a portfolio of 3 Pentahotels in
Kassel, Braunschweig and Eisenach to the tenant HPI Germany Hotelbesitz
GmbH (Hong Kong Chinese family owned group) and the acquisition of the
Suite Novotel Hamburg City by German fund manager Deka Immobilien.

While the market remains very active negotiating deals, driven by the
need for existing investment structures to be refinanced and that of
new equity investors to place capital, the continued lack of debt
and/or high margins from those active lending banks, make transactions
difficult to complete. Larger transactions, involving multiple lenders
are particularly difficult to execute, although appetite remains for
quality stock. However, bank restructuring activities are increasing
which will help drive investment volumes. Therefore, the outlook for
2012 remains much the same as 2011, with a total hotel transaction
volume of around €8 billion forecast."

About Jones Lang LaSalle Hotels
Jones Lang LaSalle Hotels, the first and leading global hotel
investment services firm, is uniquely positioned to provide the depth
and breadth of advice required by hotel investor and operator clients,
through a robust and integrated local network. In 2010, Jones Lang
LaSalle Hotels provided sale, purchase and financing advice on $4.1
billion worth of transactions globally. In addition, advisory and
valuation services were provided on over 1,000 assignments. The global
team comprises over 225 hotel specialists, operating from 39 offices in
20 countries. The firm's advice is supported by a dedicated global
research team, which produced 70 publications in 2010 in addition to
client research. Jones Lang LaSalle Hotels' services span the
hospitality spectrum; from luxury single assets and large portfolios to
select service and budget hotels, resorts and pubs. Services include
investment sales, mergers and acquisitions, capital raising, valuation
and appraisal, asset management, strategic planning, operator
selection, management contract negotiation, consulting, industry
research and project development services. Jones Lang LaSalle Hotels'
clients have access to the resources of its parent company, Jones Lang
LaSalle (NYSE: JLL). www.joneslanglasallehotels.com